House Subcommittee Plans Hearing On Housing

There will likely be another round of place holding and finger pointing on Capitol Hill on Sept. 15 when a House Financial Services Subcommittee opens a hearing on Fannie Mae and Freddie Mac.

Rep. Paul E. Kanjorski (D-Pa.), chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, has announced the hearing.

"This hearing, the sixth in a series about the U.S. housing finance system and its future, will examine the primary causes of the financial losses for Fannie Mae and Freddie Mac, as well as the progress made during the last two years in stabilizing our mortgage markets and ensuring the continued availability of reasonably priced loans," Kanjorski said.

"The hearing will also explore the steps being taken to limit future red ink, such as efforts to improve credit quality, better calculate guarantee fees, and secure funds from mortgage and bond insurers, underwriters of faulty mortgages, and the issuers of the underwater securities purchased by the enterprises.

"By altering securitization rules, protecting against inflated appraisals, and holding rating agencies accountable, the landmark Wall Street reform law laid the foundation for reforming our housing finance system, and this hearing will facilitate congressional work in achieving this goal."

Edward J. DeMarco, acting director of the Federal Housing Finance Agency, and Michael S. Barr, assistant secretary of Financial Institutions of the U.S. Department of the Treasury, will be in the witness chairs for the hearings.